I use one of the following methods:
Jasc Animation Studio
Jasc Animation Studio + Windows Movie Maker 2 for capping (I've done this for a fansub, Animation Studio won't open xvid for me, I'm sure it's how my codecs are set up)

I have these (both avatars from another forum with I made)

I actually used a smaller version of the one above here for awhile (it's Airmaster, the character is Sakiyama Kaori)
Chii from Chobits - this one was from DVD footage which I ripped and converted for an AMV

The most expedient way to avert crisis is always by the indiscriminate extinction of anything that stands in your way.
"Give me the power to kill with impunity! I'll put it to damn good use!" - Black Mage

probably not as good as the itachi one as it has more visual noise and doesn't flow as good but it's ok..

He looks like he is trying to do the jaws theme and failing.

The most expedient way to avert crisis is always by the indiscriminate extinction of anything that stands in your way.
"Give me the power to kill with impunity! I'll put it to damn good use!" - Black Mage

How did you get just a piece of it? I have a GIF I want as my avatar, but it is too big size-wise and KB-wise.

The most expedient way to avert crisis is always by the indiscriminate extinction of anything that stands in your way.
"Give me the power to kill with impunity! I'll put it to damn good use!" - Black Mage

"I've spent the last ten years of my life defending my country, I've sacrificed for it, fought for it, and bled for it, now it's time I got something back, so please just respect me and my fellow Soldiers, Sailors, Airmen, and Marines as we continue to do this job." Americans sleep peacefully in their beds at night because brave men stand willing to do violence on their behalf

"I've spent the last ten years of my life defending my country, I've sacrificed for it, fought for it, and bled for it, now it's time I got something back, so please just respect me and my fellow Soldiers, Sailors, Airmen, and Marines as we continue to do this job." Americans sleep peacefully in their beds at night because brave men stand willing to do violence on their behalf

"I've spent the last ten years of my life defending my country, I've sacrificed for it, fought for it, and bled for it, now it's time I got something back, so please just respect me and my fellow Soldiers, Sailors, Airmen, and Marines as we continue to do this job." Americans sleep peacefully in their beds at night because brave men stand willing to do violence on their behalf